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European Equities Stumble on Disappointing Inflation Figures

By Investors Hub

European stocks have moved mostly lower on Wednesday, although U.K. stocks rose slightly amid weakness in the pound after both headline and core inflation figures for September came in below expectations. The data eased pressure on the Bank of England to push through another pre-Brexit rate hike.

Consumer price inflation came in at 2.4 percent in September versus 2.7 percent in August. Economists expected the rate to dip to 2.6 percent.

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Core inflation, which excludes energy, food, alcoholic beverages and tobacco, slowed to 1.9 percent from 2.1 percent in August.

Meanwhile, analysts have little hope for a breakthrough on Brexit at the EU summit staring today.

While the U.K.?s FTSE 100 Index is up by 0.1 percent, the French CAC 40 Index is down by 0.3 percent and the German DAX Index is down by 0.5 percent.

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Automakers have drifted lower after industry data showed European passenger car registrations declined sharply in September.

Passenger car sales declined 23.5 percent annually in September, reversing a 31.2 percent increase in August, as the introduction of the new WLTP test at the beginning of last month caused an exceptional surge in registrations in August, the Automobile Manufacturers Association said.

Housebuilder Crest Nicholson Holdings has slumped in London after warning of lower profits. Barratt Developments has also dropped despite the company getting off to a strong start in fiscal 2019.

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Meanwhile, semiconductor bellwether ASML has rallied after its fourth quarter sales and profits topped forecasts.

Dutch paints and coatings maker AkzoNobel has also climbed. The company’s third quarter core profit rose 8 percent despite big headwinds on currency and raw materials.

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Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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